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On some relations between a continuous time Luenberger productivity indicator and the Solow model
Author(s) -
Briec Walter,
Lasselle Laurence
Publication year - 2022
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/boer.12305
Subject(s) - productivity , economics , econometrics , solow residual , analogy , mathematical economics , total factor productivity , growth accounting , macroeconomics , linguistics , philosophy
We introduce well‐known microeconomics productivity measures in Solow models in discrete time or continuous time by adopting a Luenberger‐type approach. In each framework, we derive the productivity indicators and the dynamical paths. First, we show that the expression of the productivity indicators are similar to the well‐known Solow residuals, allowing us to make an analogy between a firm's behavior in a microeconomic setting and a country's behavior in a macroeconomic setting. Second, we demonstrate that the properties of the paths are similar in both frameworks.